NU Online News Service, Aug. 05, 3:33 p.m. EDT

Moody's Investor Services expects reserve releases from the U.S. property & casualty industry to "taper off" over the next year to two years.

Reserves are still redundant, but the "cushion has narrowed considerably," Moody's said in a special report. Favorable development occurred in all lines in 2009, the provider of credit ratings, research, and risk analysis said.

But as releases shrink, taking into account lower investment yields, "insurers will either raise prices or watch their combined ratios continue to rise."

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